All other ADIs | Means an ADI that is not a Building Society or a Credit Union |
Authorised deposit-taking institutions (ADIs) | Means an authorised deposit-taking institution within the meaning of the Banking Act 1959. It excludes: · the RBA. Report these under RBA; and · money market corporations. Report these under registered financial corporations. |
Building society | Means a locally incorporated ADI that assumes or uses the expression ‘building society’ in relation to its banking business. |
Central borrowing authorities | Means entities that primarily provide finance for public corporations and notional institutional units and other units owned or controlled by the government. They arrange the investment of surplus funds. Central borrowing authorities raise funds predominantly by issuing securities. They also engage in other intermediation activity for investment purposes, and may participate in the financial management activities of the parent government. It includes all central borrowing authorities established by state and territory governments. |
Clearing houses and central counterparties | Means all recognised clearing houses, such as the Australian Stock Exchange Clearing House and Sydney Futures Exchange Clearing House. Central counterparties (CCPs) are clearing houses that interpose themselves between counterparties to contracts traded in one or more financial markets, becoming the buyer to every seller and the seller to every buyer. A CCP becomes counterparty to trades with market participants through novation, an open offer system, or another legally binding arrangement. Central counterparties and clearing houses are financial auxiliaries. |
Commonwealth general government | Means Australian Commonwealth Government departments and agencies whose principal function is to provide non-market goods and services, principally financed by taxes, for free or at a price well below the cost of production. These entities regulate economic activity, maintain law and order and redistribute income and wealth by means of transfers. It includes: · departments and agencies such as Department of Finance, Department of Defence, Australian Broadcasting Corporation, Special Broadcasting Service, Australian Film Commission and CSIRO; · Commonwealth Government unincorporated enterprises that provide goods and services to the Australian Commonwealth Government and/or to the public for free or at prices that are not economically significant (e.g. government employee cafeterias, munitions factories); · non-profit institutions (NPIs) controlled and mainly financed (other than by grants) by the Commonwealth Government; · Commonwealth Government quasi-corporations that sell their output, at near market prices, exclusively to other government units (e.g. government printers and defence force housing schemes); and · public universities. It excludes: · government trading enterprises such as Australia Post. Report these under Commonwealth Government non-financial corporations, state, territory and local government non-financial corporations or financial institutions as appropriate; · departments of the state and territory governments. Report these as state, territory and local general government; · the RBA and Commonwealth Government financial institutions such as Australian Industry Development Corporation and Export Finance and Insurance Corporation. Report these under financial institutions as appropriate; and · NPIs credited for philanthropic purposes that are financed mainly from donations or government grants. Report these under community service organisations. |
Commonwealth Government non-financial corporations | Means those businesses that are owned and controlled by the Australian Commonwealth Government and that produce goods or non-financial services for sale at market prices. It includes: all resident trading enterprises owned 50% or more by the Commonwealth Government or controlled by the Commonwealth Government through legislation, decree or regulation (e.g. Australia Post, Australian Government Solicitor, Snowy Hydro Ltd, NBN Co Limited and Air Services Australia). It excludes: · government departments. Report these as general government; and · government-owned financial institutions. Report these under financial institutions. |
Community service organisations | Means non-market operators providing goods and services to households for free or at prices that are not economically significant. Included here are non-profit institutions (NPIs) that are mainly financed from household member subscriptions and produce benefits primarily for the household members and NPIs credited for philanthropic purposes that are financed mainly from donations or government grants. It includes: · aid agencies, charities, consumers associations, cultural clubs, learned societies, political parties, recreational clubs, relief agencies, religious institutions, social clubs, sports clubs, trade unions; and · NPIs credited for philanthropic purposes that are financed mainly from donations or government grants. It excludes: · community service organisations and NPIs controlled and mainly financed (other than by grants) by government. Report these under general government; and · NPIs that are engaged in market production. Report these in non-financial businesses or financial institutions as appropriate. |
Credit union | Means a locally incorporated ADI that assumes or uses the expression ‘credit union’ in relation to its banking business and includes Cairns Penny Savings & Loans Limited. |
Exchange-traded funds (ETFs) | Means investment vehicles that are listed on a stock exchange and provide investors with the return of some benchmark, such as an equity index. ETFs are a type of non-money-market financial investment fund. |
Financial auxiliaries | Means corporations and quasi-corporations engaged primarily in activities closely related to financial intermediation, but which do not themselves perform an intermediation role. It includes fund managers as principal, stockbrokers, insurance brokers, investment advisors and corporations providing infrastructure for financial markets. |
Financial institutions | Means all corporations and notional institutional units mainly engaged in financial intermediation and the provision of auxiliary financial services. Holding companies with mainly financial corporations as their subsidiaries are also included, as are market non-profit institutions that mainly engage in financial intermediation or the production of auxiliary financial services. Financial institutions include (but are not limited to): the RBA, ADIs, registered financial corporations, central borrowing authorities, life insurance corporations, other insurance corporations, self-managed superannuation funds, other superannuation funds, financial auxiliaries, securitisers, money-market investment funds and non-money-market financial investment funds. |
Financial institutions n.e.c. | Means any financial institutions other than the RBA, ADIs, registered financial corporations, central borrowing authorities, life insurance corporations, other insurance corporations, self-managed superannuation funds, other superannuation funds, financial auxiliaries, securitisers, money-market investment funds and non-money-market financial investment funds. It includes: · warehouses; · structured investment vehicles (SIVs); and · non-traditional lenders. |
General government | Means Commonwealth general government and state, territory and local general government. |
Households | Means persons whose dealings with other sectors are for personal or housing purposes. It excludes: · persons whose dealings with other sectors are for business purposes. Report these under non-financial businesses or financial institutions; · sole proprietors, partnerships, and any other unincorporated enterprises owned by households. Report these under private unincorporated businesses or the relevant sector in financial institutions; · companies owned by households. Report these under private non-financial corporations; · family trusts. Report these under private unincorporated businesses; · self-managed superannuation funds. Report these as self-managed superannuation funds; and · incorporated businesses. Report these under non-financial businesses (other than unincorporated businesses) or financial institutions. |
Insurance corporations | Means life insurance corporations and other insurance corporations. |
Life insurance corporations | Means life insurance companies and friendly societies that are registered under the Life Insurance Act 1995 and are regulated by APRA. They offer insurance for death or disability and also offer investment and superannuation products. It includes: life insurance companies, life reinsurance companies and friendly societies. It excludes: · insurance companies offering house, car and marine insurance. Report these under other insurance corporations; and · health benefit funds that are regulated under the Private Health Insurance (Prudential Supervision) Act 2015. Report these under other insurance corporations. |
Money-market investment funds | Means collective investment schemes, such as cash management trusts and cash common funds, that are constituted as legal entities. They raise funds by issuing shares or units to the public, either via a prospectus or a distribution channel such as a platform. The proceeds are invested primarily in money-market instruments, money-market shares/units, and transferable debt instruments with a residual maturity of less than or equal to 12 months, deposits at banks, and instruments that pursue a rate of return that approaches the interest rates of money-market instruments. It includes: · cash common funds; · money-market funds; and · cash management trusts. |
Non-financial businesses | Means private non-financial investment funds, other private non-financial corporations, private unincorporated businesses, Commonwealth Government non-financial corporations and state, territory and local government non-financial corporations. |
Non-money-market financial investment funds | Means collective investment schemes, such as trusts or corporations, that are constituted as legal entities. They raise funds by issuing shares or units to the public, either via a prospectus or a distribution channel such as a platform. The proceeds are used to purchase financial assets. The assets are owned by the investment fund and usually managed by licensed fund managers external to the fund. Investors are able to dispose of their units/shares on a well-developed secondary market such as a stock exchange or through readily accessible redemption facilities. It includes: · funds with predominantly overseas property or infrastructure holdings; · listed and unlisted equity trusts (domestic and international); · listed and unlisted mortgage trusts; · listed investment companies; and · non-cash common funds. It excludes: investment funds that predominately invest in non-financial assets. Report these in private non-financial investment funds. |
Non-resident banks | Means any non-resident financial institution whose business is to receive deposits (or close substitutes for deposits) and to extend credit or invest in securities on their own account. |
Non-resident superannuation funds | Means any non-resident funds designed specifically for the purpose of providing a pension or other income stream on retirement. It excludes: · other superannuation funds that are residents; and · self-managed superannuation funds that are residents. |
Non-profit institutions (NPIs) | Means any legal entity which: · is created for the purpose of producing goods and services, and; · whose articles of association prohibit it from being a source of income, profit or other financial gain to the units that establish, control or finance the legal entity. |
Other insurance corporations | Means all insurance corporations registered as a general insurance company or private health insurance company with APRA under the Insurance Act 1973 (or by virtue of determinations made by APRA under the General Insurance Reform Act 2001) or the Private Health Insurance (Prudential Supervision) Act 2015, respectively. This includes general, fire, accident, employer liability, household and consumer credit insurers and health insurance funds. They mainly offer house, car and marine insurance. It includes the following even though these are not registered with APRA: · Export Finance Insurance Corporation; and · private sector and government-owned general and health insurance enterprises, both proprietary and mutual. It excludes: · life insurance companies, life reinsurance companies and friendly societies. Report these under life insurance companies; and · insurance brokers. Report these under financial auxiliaries. |
Other private non-financial corporations | Means corporations that are owned and controlled by the non-government sector, whose main activity is producing goods or non-financial services for sale at market prices. They may be listed on stock exchanges or unlisted. It includes: · all private corporate non-financial enterprises, and non-profit institutions that are market producers of goods or non-financial services, other than private non-financial investment funds; · intra-group financiers (Financial Sector (Collection of Data) Act 2001 Category I) and parent companies with significant holdings of shares in private trading companies; · privately owned schools and hospitals; · corporations that meet the above description that are owned by households (family companies); · any private unincorporated business that is a branch in Australia of a non-resident company and which is not a financial institution; · any private unincorporated business owned and operated by trading corporations (e.g. joint ventures); · holding companies with mainly non-financial corporations as subsidiaries; and · non-financial investment syndicates that are not open to public subscription. It excludes: · publicly listed property trusts. Report these under private non-financial investment funds; and · unincorporated businesses that are not branches of non-resident companies or joint ventures, or partnerships owned by corporations. Report unincorporated businesses other than those listed above under private unincorporated businesses. |
Other superannuation funds | Means funds established to provide benefits for their members on retirement, resignation, death or disablement that are regulated by APRA. A superannuation fund usually takes the legal form of a trust fund. This includes all superannuation funds that are regarded as complying funds for the purposes of the Superannuation Industry (Supervision) Act 1993 (SIS Act) and other autonomous funds established for the benefit of public sector employees. Superannuation funds with all of their assets invested with insurance offices are included. It includes: · pooled superannuation trusts; · public sector superannuation funds (including exempt public sector superannuation schemes (EPSSS); · private sector superannuation funds; · approved deposit funds; and · superannuation funds established by life insurance corporations. It excludes: · self-managed superannuation funds. Report these under self-managed superannuation funds; · retirement savings accounts. Report these under households; and · the Future Fund. Report this under Commonwealth general government. |
Private and public sector businesses | Means community service organisations, non-financial businesses and financial institutions. It excludes: · households; and · general government. |
Private non-financial businesses | Means private non-financial investment funds, other private non-financial corporations and private unincorporated businesses. |
Private non-financial corporations | Means private non-financial investment funds and other private non-financial corporations. |
Private non-financial investment funds | Means collective investment schemes, such as trusts or corporations, in which investment funds are pooled and invested in predominantly long-term non-financial assets such as property or infrastructure. They raise funds by issuing shares or units to the public, either via a prospectus or a distribution channel such as a platform. Investors are able to dispose of their holdings through well-developed secondary markets such as a stock exchange or through readily accessible redemption facilitates. Usually the management of funds is undertaken by a licensed fund manager external to the fund. It includes: · infrastructure funds (e.g. airports, pipelines); · listed and unlisted property trusts (where the funds are predominantly invested in Australian property); and · property common funds. It excludes: · film funds. Report these in other private non-financial corporations; · non-financial investment syndicates that are not open to public subscriptions. Report these under other private non-financial corporations; · agricultural investment funds. Report these under other private non-financial corporations; · funds predominantly investing in financial assets. Report these under financial institutions; and · funds with overseas property investments. Report these under non-money-market financial investment funds. |
Private unincorporated businesses | Means persons acting as sole proprietors or in partnerships for business purposes. The major businesses in this sub-sector are unincorporated farms, unincorporated retailers, unincorporated professional practices (medical, legal, dental, accounting, etc.), unincorporated businesses of tradespeople such as plumbers, electricians, carpenters, etc. It includes: · households whose dealings with other sectors are for business purposes; and · family trusts. It excludes: · unincorporated businesses offering financial services. Report these under financial institutions; · any unincorporated business that is a branch of a non-resident company. Report these under other private non-financial corporations or financial institutions as appropriate; · unincorporated businesses that are owned by private trading corporations (e.g. joint ventures). Report these under other private non-financial corporations or financial institutions as appropriate; and · government unincorporated enterprises that provide goods and services to the Australian Commonwealth, state or local government and/or to the public for free or at prices that are not economically significant (e.g. government employee cafeterias, munitions factories). Report these under general government. |
Public non-financial corporations | Means Commonwealth Government non-financial corporations and state, territory and local government non-financial corporations. |
Real estate investment trusts (REITs) | Means investment vehicles with funds invested in a variety of property assets. REITs are a type of private non-financial investment fund. |
Registered financial corporations (RFCs) | Means corporations that are registered entities under the Financial Sector (Collection of Data) Act 2001 that are classified as Category ‘D’ or ‘Other’ by APRA. It includes: · money market corporations (category ‘D’); and · pastoral finance companies, finance companies and general financiers (category ‘Other’ (formerly categories ‘E’, ‘F’ and ‘G’)). It excludes: · intra-group financiers registered under the Financial Sector (Collection of Data) Act 2001 category ‘I’. Report these under other private non-financial corporations; and · cash management trusts. Report these under money-market investment funds. |
Reserve Bank of Australia (RBA) | Means Australia’s central bank. Its main responsibilities include the conduct of monetary policy and maintaining the stability of the financial system. The RBA is an active participant in financial markets, manages Australia’s foreign reserves, issues Australian currency notes and serves as the banker to the Australian Government and the banking system. |
Securitisers | Means issuers of asset-backed securities created through the process of securitisation. It excludes: issuers of covered bonds. Report these as ADIs. |
Self-managed superannuation funds (SMSFs) | Means a fund that meets the conditions in sections 17A and 17B of the Superannuation Industry (Supervision) Act 1993. SMSFs are established to provide benefits for its members on retirement, resignation, death or disablement, with the superannuation fund usually taking the legal form of a trust fund. It includes: superannuation funds with 1-4 members that are regulated by the Australian Taxation Office. It excludes: superannuation funds with 5 or more members. Report these under other superannuation funds. |
Special purpose vehicle (SPV) | Means a legal entity created at the direction of a sponsor. The SPV can take the form of a corporation, trust, partnership or a limited liability company. SPVs are generally structured to be bankruptcy remote from the sponsor, so that if the sponsor enters bankruptcy proceedings, the sponsor’s creditors cannot seize the assets of the SPV. SPVs are often used during the securitisation process, where the cash flow-producing assets backing the security are often sold to an SPV. SPVs do not fit within a single sub-sector, and may be reported under non-financial businesses or financial institutions as appropriate. |
State, territory and local general government | Means entities that provide non-market goods and services, principally financed by taxes, for free or at a price well below the cost of production. These entities regulate economic activity, maintain law and order and redistribute income and wealth by means of transfers. It includes: · state and local government unincorporated enterprises that provide goods and services to their government and/or to the public for free or at prices that are not economically significant (e.g. government employee cafeterias, municipal swimming pools); · non-profit institutions (NPIs) controlled and mainly financed by state and local government; · state government quasi-corporations which sell their output, at near market prices, exclusively to other government units (e.g. government printers); · state and territory government departments and agencies; and · public (state) schools, technical and further education colleges and state-owned hospitals. It excludes: · all state and local government trading enterprises and financial enterprises (e.g. rail, and municipal water authorities). Report these under state, territory and local government non-financial corporations or financial institutions as appropriate; · state and territory central borrowing authorities or treasury corporations. Report these under central borrowing authorities; and · NPIs credited for philanthropic purposes that are financed mainly from donations or government grants. Report these under community service organisations. |
State, territory and local government non-financial corporations | Means businesses that are owned and controlled by state, territory or local governments and that produce goods or non-financial services for sale at market prices. It includes: all resident trading enterprises of which 50% or more is owned by state, territory or local government or controlled by state, territory or local government through legislation, decree or regulation (e.g. state rail and water authorities, gas and fuel authorities, housing commissions, port authorities, non-privatised power authorities). It excludes: · state, territory or local government-owned financial institutions. Report these under financial institutions; · entities in the general government and government departments. Report these under general government; and · state and territory central borrowing authorities or treasury corporations. Report these under central borrowing authorities. |
Superannuation funds | Means self-managed superannuation funds and other superannuation funds. |
Accommodation and food services | Means businesses mainly engaged in providing short-term accommodation for visitors. Also included are businesses mainly engaged in providing food and beverage services, such as the preparation and serving of meals and the serving of alcoholic beverages for consumption by customers, both on- and off-site. |
Administrative and support services | Means businesses engaged in performing routine support activities for the day-to-day operations of other businesses or organisations. Businesses providing administrative support services are mainly engaged in activities such as office administration; hiring and placing personnel for others; preparing documents; taking orders for clients by telephone; providing credit reporting or collecting services; and arranging travel and travel tours. Businesses providing other types of support services are mainly engaged in activities such as buildings and other cleaning services; pest control services; gardening services; and packaging products for others. The activities undertaken by businesses in this industry are often integral parts of the activities of businesses found in all sectors of the economy. Recent trends have moved more towards the outsourcing of such non-core activities. The businesses classified in this industry specialise in one or more of these activities and can, therefore, provide services to a variety of clients. |
Agriculture, forestry and fishing | Means businesses mainly engaged in growing crops, raising animals, growing and harvesting timber, and harvesting fish and other animals from farms or their natural habitats. |
Arts and recreation services | Means businesses mainly engaged in the preservation and exhibition of objects and sites of historical, cultural or educational interest; the production of original artistic works and/or participation in live performances, events, or exhibits intended for public viewing; and the operation of facilities or the provision of services that enable patrons to participate in sporting or recreational activities, or to pursue amusement interests. |
Construction (industry) | Means businesses mainly engaged in construction, additions, alterations, reconstruction, installation, and maintenance and repairs of buildings and other structures. Businesses engaged in demolition or wrecking of buildings and other structures, and clearing of building sites are included. It also includes businesses engaged in blasting, test drilling, landfilling, levelling, earthmoving, excavation, land drainage and other land preparation. Construction includes: · residential building construction; · non-residential building construction; and · other construction. |
Education and training | Means businesses mainly engaged in the provision and support of education and training, except those engaged in the training of animals e.g. dog obedience training, horse training (report these in other services). Education may be provided in a range of settings, such as educational institutions, the workplace, or the home. Generally, instruction is delivered through face-to-face interaction between teachers/instructors and students, although other means and mediums of delivery, such as by correspondence, radio, television or the internet, may be used. |
Electricity, gas, water and waste services | Means businesses engaged in the production of electricity; gas through mains systems; water; drainage; and sewage services. The industry also includes businesses mainly engaged in the collection, treatment and disposal of water materials; remediation of contaminated materials (including land); and materials recovery activities. |
Financial and insurance services | Means businesses mainly engaged in financial transactions involving the creation, liquidation or change in ownership of assets, and/or in facilitating financial transactions. The range of activities includes raising funds by taking deposits and/or issuing securities and, in the process, incurring liabilities; businesses investing their own funds in a range of financial assets; pooling risk by underwriting insurance and annuities; separately constituted funds engaged in the provision of retirement incomes and specialised services facilitating or supporting financial intermediation, insurance and employee benefit programs. Also included are central banking, monetary control and the regulation of financial activities. |
Health care and social assistance | Means businesses mainly engaged in providing human health care and social assistance. Businesses engaged in providing these services apply common processes, where the labour inputs of practitioners with the requisite expertise and qualifications are integral to production or service delivery. |
Information media and telecommunications | Means businesses mainly engaged in: · creating, enhancing and storing information products in media that allows for their dissemination; · transmitting information products using analogue and digital services (via electronic, wireless, optical or other means); and · providing transmission services and/or operating the infrastructure to enable transmission and storage of information and information products. |
Manufacturing | Means businesses mainly engaged in the physical or chemical transformation of materials, substances or components into new products (except agriculture and construction). The materials, substances or components transformed by businesses in this industry are raw materials that are products of agriculture, forestry and fishing, mining or products of other manufacturing businesses. Activities undertaken by businesses incidental to their manufacturing activity, such as selling directly to the consumer products manufactured on the same premises from which they are sold, such as bakeries and custom tailors, are also included in this industry. If, in addition to self-produced products, other products that are not manufactured by the same business are also sold, the rules for the treatment of mixed activities have to be applied and businesses classified according to their predominant activity. Assembly of the component parts of manufactured products, either self-produced or purchased from other businesses, is considered manufacturing. For example, assembly of self-manufactured prefabricated components at a construction site is considered manufacturing, as the assembly is incidental to the manufacturing activity. Conversely, when undertaken as a primary activity, the on-site assembly of components manufactured by others is considered to be construction. |
Mining | Means businesses that mainly extract naturally occurring mineral solids, such as coal and ores; liquid minerals, such as crude petroleum; and gases, such as natural gas. The term mining is used in the broad sense to include underground or open cut mining; dredging; quarrying; well operations or evaporation pans; recovery from ore dumps or tailings as well as beneficiation activities (i.e. preparing, including crushing, screening, washing and flotation) and other preparation work customarily preformed at the mine site or as part of the mining activity. |
Non-residential building construction | This class consists of units mainly engaged in the construction of non-residential buildings such as hotels, motels, hostels, hospitals, prisons or other buildings, in carrying out alterations, additions or renovation to such buildings, or in organising or managing these activities. |
Other construction | This class consists of units mainly involved in heavy and civil engineering construction, or other construction services including: land development and site preparation; building structure services; building installation services; building completion services; and other construction services (such as landscaping or the hire of construction machinery). |
Other services | Means businesses involved in a broad range of personal services; religious, civic, professional and other interest group services; selected repair and maintenance activities; and private households employing staff. Businesses in this division are mainly engaged in providing a range of personal care services, such as hair, beauty and diet and weight management services; providing death care services; promoting or administering religious events or activities; or promoting and defending the interests of their members. Also included are businesses mainly engaged in repairing and/or maintaining plant and equipment (except ships, boats, aircraft, or railway rolling stock) or other items (except buildings); as well as businesses of households that engage in employing workers on or about the premises in activities primarily concerned with the operation of households. |
Professional, scientific and technical services | Means businesses engaged in providing these services apply common processes where labour inputs are integral to production or service delivery. The activities undertaken generally require a high level of expertise and training and formal (usually tertiary level) qualifications. Businesses in this industry specialise and sell this expertise and, in most cases, equipment and materials are not major inputs. Professional, scientific and technical services include scientific research, architecture, engineering, computer systems design, law, accountancy, advertising, market research, management and other consultancy, veterinary science and professional photography. |
Public administration and safety | Means businesses mainly engaged in central, state or local government legislative, executive and judicial activities; in providing physical, social, economic and general public safety and security services; and in enforcing regulations. Also included are businesses of military defence, government representation and international government organisations. |
Rental, hiring and real estate services | Means businesses mainly engaged in renting, hiring or otherwise allowing the use of assets (except copyrights), and businesses providing related services. The assets may be tangible, as in the case of real estate and equipment, or intangible, as in the case with patents and trademarks. The industry also includes businesses engaged in providing real estate services such as selling, renting and/or buying real estate for others, managing real estate for others and appraising real estate. |
Residential building construction | This class consists of units mainly engaged in the construction of dwellings (both freestanding houses and residential buildings (e.g. semi-detached houses, duplex houses, apartments, or flats)) or in carrying out alterations, additions or renovations to such buildings, or in organising or managing these activities. |
Retail trade | Means businesses mainly engaged in the purchase and on-selling, the commission-based buying, and the commission-based selling of goods, without significant transformation, to the general public (households). The retail trade industry also includes businesses that purchase and on-sell goods to the general public using non-traditional means, including the internet. Businesses are classified to the retail trade industry in the first instance if they buy goods and then on-sell them (including on a commission basis) to the general public. Retail businesses generally operate from premises located and designed to attract a high volume of walk-in customers, have an extensive display of goods, and/or use mass media advertising designed to attract customers. The display and advertising of goods may be physical or electronic. Also include businesses that sell to both businesses and the general public that have these characteristics. Physical display and advertising includes shops, printed catalogues, billboards and print advertisements. Electronic display and advertising includes catalogues, internet websites, television and radio advertisements and infomercials. While non-store retailers, by definition, do not possess the physical characteristics of traditional retail businesses with a physical shop-front location, these businesses share the requisite function of the purchasing and on selling of goods to the general public, and are therefore included in this industry. |
Transport, postal and warehousing | Means businesses mainly engaged in providing transportation of passengers and freight by road, rail, water or air. Include other transportation activities such as postal services, pipeline transport and scenic and sightseeing transport. Businesses mainly engaged in providing foods warehousing and storage activities are included. The industry also includes businesses mainly engaged in providing support services for the transportation of passengers and freight. These activities include stevedoring services, harbor services, navigation services, airport operations and customs agency services. |
Wholesale trade | Means businesses mainly engaged in the purchase and on-selling, the commission-based buying, and the commission-based selling of goods, without significant transformation, to businesses. Businesses are classified to the wholesale trade industry in the first instance if they buy goods and then on-sell them (including on a commission basis) to businesses. Wholesalers’ premises are usually a warehouse or office with little or no display of their goods, large storage facilities, and are not generally located or designed to attract a high proportion of walk-in customers. Wholesaling is often characterised by high value and/or bulk volume transactions, and customers are generally reached through trade-specific contracts. Also include businesses that sell to both other businesses and the general public (households) that also have these characteristics. |
AASB | Has the meaning in section 9 of the Corporations Act 2001. |
ABS | Means the Australian Bureau of Statistics established under the Australian Bureau of Statistics Act 1975. |
Acceptances | See accepted bills of exchange. |
Accepted (bills of exchange) | Means bills of exchange that have been signed by the drawee, which ‘accepts’ liability to pay out the funds on the due date. The drawer incurs a corresponding liability towards the drawee. |
Account servicing fees charged | Means fees charged to cover regular account-keeping costs. It includes: · periodic servicing fees (including periodic charges where the fee is a fixed amount and not dependent on the number of transactions); and · package fees (for example, professional packages). Include these with the product (deposit account or loan) that they most relate to. For loans and finance leases it also includes: · loan and finance lease establishment and deferred establishment fees; and · application and settlement fees. |
Acquisitions | Means where a business buys part (or all) of another business, in order to assume control of the firm. |
Additional Tier 1 capital instruments | Means instruments that meet the definition of Additional Tier 1 Capital in Prudential Standard APS 111 Capital Adequacy: Measurement of Capital (APS 111). Excludes instruments that do not fully meet the criteria in Attachment E (whether or not these are eligible for transitional treatment under Attachment L of APS 111). |
Advertising expenses | Refers to costs incurred by a business for promotional and publicity campaigns aimed at bringing the activities of the business to the attention of consumers for the purpose of increasing sales. It includes: · credit card loyalty programs; · marketing expenses. It excludes: · in-house costs (e.g. wages and salaries of own advertising staff); and · sponsorship expenses. |
Allocated gold | Means an account that provides ownership of a specific piece of gold. |
Alterations, additions and repairs | Means any structural or non-structural change to existing residential property, non-residential buildings or non-building structures. It includes: · repairs and maintenance; · structural and non-structural changes to dwellings (e.g. garages, carports, pergolas, re-roofing, re-cladding etc.); · structural and non-structural changes to non-residential buildings (e.g. renovations and refits); and · non-building work that improves the value of properties with attached dwellings or non-residential buildings (e.g. pools or landscaping). It excludes: · dwelling or non-residential building furnishings not attached to the property. Report these under the appropriate personal or business purpose sub-class; · changes to dwellings that result in the creation of new dwelling (e.g. an attached granny-flat). Report these as construction; and · conversions from non-residential buildings to dwellings (and vice versa). Report these as construction. |
Amortisation and impairment of software | Report Amortisation and impairment of software in accordance with the treatment of computer software as outlined by AASB 138 Intangible Assets (AASB 138). |
Amortising | Refers to loans on which interest is paid and principal is automatically amortised. Also known as principal and interest (P&I). |
APRA | Means the Australian Prudential Regulation Authority established under the Australian Prudential Regulation Authority Act 1998. |
Asset-backed securities | Means debt securities that are backed by cash flows from assets such as loans. Asset-backed securities are similar to covered bonds, but in the event of bankruptcy, the investor has recourse only to the collateral and not the originator or servicer of the loans or finance leases. |
Audit and other accounting services expense | Refers to the costs incurred for the professional advice and skills of an auditor or accountant. It includes: · cost of producing annual or sub-annual financial reports; · preparing other financial accounts; · auditing services; and · carrying out other accounting services. |
Australian equities | Means shares that are quoted on Australian securities exchanges. |
Australian Government Securities | Means all securities issued by the Australian Government at tenders conducted by the Australian Office of Financial Management (AOFM). It includes: Treasury bonds, Treasury notes, Treasury indexed bonds and, previously, Treasury adjustable rate bonds issued by the Australian Government at tenders or through syndication by the AOFM. |
Available for re-use | Means securities that are received as collateral for one transaction and also used as collateral for another transaction. This is distinct from re-hypothecation, which is a subset of re-use but for client assets only. |
Capital expenditure | Refers to the sum of outlays incurred for the purchase of fixed tangible assets and/or intangible assets by the business during the reference period. Include capital work done by own employees. It includes: · all costs capitalised in this business’ books (including legal fees, real estate transfer costs and assets acquired under finance leases); · progress payments made to contractors for capital work done by them; and · major improvements, alterations and additions to property, plant and equipment. It excludes: · progress payments for plant and equipment being produced on order; · payments for repair and maintenance of property, plant and equipment; and · interest expense incurred. |
Capital profits reserve | Means the realised value of revaluations associated with an asset or class of assets that have been disposed of. These assets have been subject to the fair value basis of measurement and revaluations accounted for in accordance with accounting standard AASB 116 Property, Plant and Equipment (AASB 116). Due to the disposal of these assets, the balance of the asset revaluation reserve (ARR) associated with these assets has been transferred to a capital profits reserve. |
Capitalised expenses | Refers to delaying the recognition of expenses by recording the expense as a long-term asset. |
Cash currency | Means the currency in which the cash leg of the repo or reverse repo is denominated. |
Centrally cleared | Means principal-to-principal transactions novated by a central counterparty rather than settled on a bilateral basis. |
Certificates of deposit | Means a category of debt securities or deposits that are issued at a discount to face value. Includes negotiable certificates of deposit and non-negotiable certificates of deposit. |
Cleaning services provided by other businesses | Refers to expenses that are incurred when the business’ premises are cleaned by an external business. It includes: · building cleaning; · office cleaning; · window cleaning; · furniture cleaning; and · removal of waste from inside to areas outside the office compounds. It excludes: wages and salaries of own employees engaged in cleaning activities. |
Collateral | Means an asset provided by one party to be held by the counterparty in an agreement in order to provide cover against credit risk exposure taken in respect of the party providing collateral. |
Collective provision | Means all provisions for impairment assessed by an ADI or RFC on a collective basis as defined by the Australian Accounting Standards. |
Commercial paper | Means a written promise to pay a specified sum of money to the bearer at an agreed date. It is usually issued for terms ranging from 30 to 180 days and is sold to an investor at a discount to the face value. Commercial paper is also referred to as promissory notes or one name paper, and is a type of short-term debt security. It includes: promissory notes, one name paper, and asset-backed commercial paper. It excludes: floating-rate notes and similar long-term debt securities with a short-term interest rate. |
Commercial property (loan/lending) | Refers to loans representing commercial property exposures as outlined in Reporting Standard ARS 230.0 Commercial Property (ARS 230.0). Generally speaking, commercial property loans involve the provision of a facility for the development, acquisition or improvement of landed property (real estate) where the servicing and repayment of the facility is dependent on the cash flows generated by the property itself through sale or rental income, and/or from cash flows generated from other properties owned by the borrower and where the loan is not to households. It includes: land development and subdivisions. It excludes: · owner-occupied housing loans to households; · investment housing loans to households; · loans to private family companies and/or family trusts for residential property, where the residential property is occupied by the directors or principal beneficiaries of the family trust; and · facilities provided for the acquisition of property to be used for generating income primarily other than through rent or sale. For more detailed definitions see ARS 230.0. |
Commingled pool | Means a fund consisting of a diverse set of assets. |
Communications equipment | It includes: · telecommunications equipment; · main exchange and other switching equipment; · electronic switchboards; · cable/wire for communications purposes; · television and radio broadcast studio equipment; · television and radio transmitters and radio transceivers; and · modems. |
Computer software capitalised | It includes: · capitalised computer software license fees; · installation costs; · purchase or development of large databases; · computer software developed in-house; and · capitalised payments to contractors and consultants for software development. It excludes: · computer software expensed; and · software maintenance. |
Computer software expensed | Refers to costs incurred related to computer software. It includes: · installation costs paid to external service providers; · purchase costs; and · expensed computer software licence fees. It excludes: · computer software capitalised; · other information technology licence fees and royalties; and · software maintenance. |
Computers and computer peripherals | It includes: · multi-user, desktop and portable computers; · computer file servers; and · laser printers and other peripherals. It excludes: modems. |
Construction (purpose) | Means the creation of new dwellings, non-residential buildings or non-building structures. For dwellings, include: · newly erected dwellings; · changes to existing dwellings that result in the creation of a new dwelling (e.g. a granny-flat); and · conversions from non-residential buildings to dwellings (e.g. a warehouse converted to apartments). For non-residential building, include: conversions from dwellings to non-residential buildings. |
Contract expense not elsewhere included | Refers to costs incurred to other businesses and self-employed persons for work done on a contract basis. It includes: · payments to other businesses and self-employed persons for work done on a contract basis; · contractors and subcontractors and their and their employees; and · owner/drivers. |
Convertible note | Means a type of hybrid security treated as liabilities under Australian Accounting Standards. It is an instrument that contains a provision under which it may be converted from debt to equity under specific circumstances. It includes: · Additional Tier 1 capital instruments that are treated as liabilities under Australian Accounting Standards; and · Tier 2 capital instruments. |
Cost of funds | Means the institution’s internal funds transfer pricing rate for an asset. The price is established by the institution’s treasury area and ‘charged’ to the relevant business area. Where there are multiple costs of funds within a line item, represent the weighted average of these amounts in the reported value. |
Covered bond collateral pool | Covered bond collateral pool has the meaning of ‘cover pool’ as in the Banking Act 1959. |
Covered bonds | Covered bonds has the meaning in the Banking Act 1959. They are debt securities issued by an ADI that are backed by a ring-fenced pool of assets, such as housing loans. Covered bonds are similar to asset-backed securities, but in the event of bankruptcy, the investor has recourse to both the collateral and the originator or servicer of the loans or finance leases. |
Credit cards | Means a card whose holder has been granted a revolving credit line. The card enables the holder to make purchases and/or cash advances up to a pre-arranged limit. The credit granted can be settled in full by the end of a specified period or in part, with the balance taken as extended credit. Interest may be charged on the transaction amounts from the date of each transaction or only on the extended credit where the credit granted has not been settled in full. It includes: charge cards. Charge cards are credit cards that must be paid in full at the end of each statement period. It excludes: debit cards, including those linked to accounts with overdraft facilities. |
‘In use’ information technology equipment | Refers to information technology equipment classified as property, plant and equipment (including software applications that are an integral part of hardware) used in the production process of the institution as at the reporting date. |
Individual provision | Means all provisions for impairment assessed by an ADI or RFC on an individual basis as defined by the Australian Accounting Standards. |
Industrial buildings | Means any non-residential buildings (or parts of such buildings) where the primary purpose is for manual labour or storage. It includes: · warehouses; and · factories. |
Industrial machinery and equipment | Represents machinery and equipment where the primary business function is for use in the production of goods and/or services. Some items within this category may be mobile and capable of transporting people or goods. It includes: · engines and turbines; · pumps, compressors and hydraulic power engines; · lifting and handling equipment; · machine tools and accessories (hand tools, tools customarily in a workshop); · equipment for food and beverage preparation; · point of sale terminals and booking systems; · industrial cooking appliances; · domestic appliances for production purposes; and · climate control systems and other equipment in core production. |
Information technology equipment | Refers to devices that have a primary function related to the collection, transfer, storage, or processing of data. Examples include, computers, monitors, keyboards, drives and servers. |
Information technology expenses incurred | Refers to expenses incurred during the reporting period related to the use of information technology (including equipment, software and services). It includes: · market data services. It excludes: · wages and salaries of own employees; and · computer software capitalised. |
Insurance premiums other than workers compensation | It includes: · optional third party and comprehensive motor vehicle insurance premiums; · fire, general, accident and public liability premiums; and · professional indemnity insurance premiums. It excludes: · workers compensation insurance premiums/levies. Report this as workers’ compensation premiums/costs; and · compulsory third party motor vehicle insurance premiums. |
Intangible assets | Has the meaning as in AASB 138 Intangible Assets (AASB 138). |
Interest-bearing | Means liabilities that have a contractual interest rate greater than zero. If an account has more than one contractual interest rate, report as interest-bearing if at least one of the contractual interest rates is greater than zero. |
Interest expense incurred | Payments of interest incurred during the period that are due to customers and holders of debt securities during the period, including coupon payments. Report interest expense incurred in accordance with Australian Accounting Standards. It includes: · payments of scheduled interest distributions made during the period; · the interest component of zero coupon security repayments, borrowing under repurchase agreements and securities borrowing activity; and · scheduled interest payments that were not made during the period (including scheduled distributions on hybrid instruments). It excludes: non-interest payments made to customers or holders of debt securities (such as principal payments or fees) that do not form an integral part of the effective interest rate of those debt securities, as defined in AASB 9. |
Interest income earned | Interest earned from customers and issuers of securities during the period, including coupon payments. Report interest income earned in accordance with Australian Accounting Standards. It includes: · payments of scheduled interest distributions received during the period; · the interest component of funds received from zero coupon security repayments, repurchase agreements and securities lending activity; and · scheduled interest payments that were not received during the period (including scheduled distributions on hybrid securities). It excludes: non-interest payments received from customers or issuers of debt securities (such as principal payments or fees) that do not form an integral part of the effective interest rate of those debt securities, as defined in AASB 9. |
Interest-only | Refers to loans on which only interest is paid during a set period and no principal is automatically amortised. The loans will typically revert to principal-and-interest repayments at the end of the interest-only period. Only report loans as interest-only loans during their interest-only period. Once the loan has reverted to principal-and-interest repayments, the loan is classified as amortising in credit outstanding from that period. |
Interest payable | Refers to interest incurred but not yet paid. |
Interest rate | Means the contractual rate to be paid or received by the customer/counterparty/debtholder. It excludes any fees charged to the customer/counterparty/debtholder. Where there is more than one contractual rate, and the rate paid by the customer depends on their behaviour in that period, report the contractual rate that applied given their behaviour. For example, for any deposit account where the contractual interest rate varies according to the behaviour of the customer (e.g. savings accounts that pays a higher rate of interest if fewer than a certain number of withdrawals are made per month or if the value of funds in the account increases over the month), report the contractual interest rate reflecting the customer’s behaviour. Some products have specific treatments for reporting of interest rates: For credit cards, calculate the interest rate to be reported as interest charged on credit cards during the month divided by the relevant balance × 100%. For offset accounts, report the interest rate as the contractual rate payable on the linked loan account, divided by the proportion of the offset account balance that is offset against the loan balance. For instance, if the balance in the offset account is fully offset against the loan balance, then the contractual rate on the loan account would be the interest rate reported on the offset account. However, if only half of the balance in the offset account is offset against the relevant loan balance, then report the interest rate on the offset account as half of the contractual interest rate on the loan account. For set-off accounts, the interest rate to be reported on any linked loan and deposit accounts is the contractual interest rate applying to the net balance of these accounts. |
Interest receivable | Refers to interest earned but not yet received. |
Intermediated | Means a transaction concluded between two principals but where the transaction is facilitated by an agent on behalf of one or both principals (e.g. an agent lender in a securities lending program). |
Internal refinance | Occurs where: · a new loan is obtained to replace an existing loan that was provided by the ADI or RFC and the credit limit has increased from that which was available prior to refinancing; or · the credit limit on an existing loan by the ADI or RFC is increased (e.g. a ‘top-up’) and the funds will be used for substantially the same purpose class as the existing loan contract. Where the residential property for which the loan will be used changes, for reporting purposes treat this as if it were a new loan to the ADI or RFC. It includes: loan variations where there is an increase in the credit limit, but no new contract is signed. It excludes: · loan variations such as switches between variable interest rates and fixed interest rates, interest-only or amortising loans, owner occupied or investment loans and instances of collateral substitution or the addition or removal of a borrower or guarantor where these do not result in an increase in the credit limit; and · increases in credit limits resulting from missed payments and/or hardship concessions provided to the borrower. Report the amount of the new credit limit (i.e. do not subtract the previous credit limit from the new credit limit). |
Investment / investor (housing loan) | Means a loan to a household for the purpose of housing, where the funds are used for a residential property that is not owner-occupied. Where the loan is for a residential property that is different to the residential property against which the loan is secured, this definition refers to the occupation status of the residential property for which the loan has been obtained (not the occupation status of the property used as security). It includes: holiday/vacation homes and part-time residences that are not the borrower’s or borrowers’ principal place of residence. It excludes: · part-time residences that are the borrower’s or borrowers’ principal place of residence. Report these under owner-occupied housing; and · loans where the borrower is not a household. Report these under the appropriate business category. |
Negotiable certificate of deposit | Means negotiable-bearer debt securities. They are issued at a discount to the face value, can be traded in the secondary market and do not require endorsement when sold. Include transferable certificates of deposit. |
Newly erected dwelling | Refers to a dwelling that has not previously been occupied by a household. It includes: · off-the-plan purchases; and · dwellings resulting from the conversion of non-residential buildings to dwellings. It excludes: existing dwellings that have been refurbished or renovated. |
Non-building structures | Means any structures that are not buildings. It includes: roads, bridges, railways, harbours, mines, telecommunication towers, dams, powerlines, pipelines and sewers. |
Non-current assets and disposal groups classified as held for sale | Has the meaning in AASB 5 Non-current Assets Held for Sale and Discontinued Operations (AASB 5). |
Non-interest-bearing | Means liabilities that have a contractual interest rate equal to zero. If an account has more than one contractual interest rate, report as non-interest-bearing if none of the contractual interest rates are greater than zero. |
Non-lending losses and frauds | Refers to non-lending losses and fraud expenses such as litigation costs for the relevant period as determined in accordance with Australian Accounting Standards. |
Non-negotiable certificates of deposit | Means certificates of deposit that must be held by the depositor until maturity unless a penalty is paid for early withdrawal of the deposit. They are to be classified as a fixed-term deposit. |
Non-performing | Has the meaning given in Prudential Standard APS 220 Credit Risk Management. |
Non-residential buildings | Means any buildings (or part of buildings) that are not dwellings. Generally include: · shops; · offices; · industrial buildings; and · any other buildings that are not dwellings. |
Non-residential land | Means any vacant land that does not have a building attached and that is not residential land or rural property. |
Non-residential property | Means any land or buildings that are not included in residential property. Generally include: · non-residential buildings; · non-residential land; · rural property; and · non-building structures. |
Non-transaction deposits | Means all customers’ deposits, other than transaction deposits. Non-transaction deposits have limited access (e.g. only a limited number or value of withdrawals may be made from the account in a given period), incur penalties or fees (e.g. the loss of bonus interest, withdrawal fees), or have other restrictions on use of funds for payment or withdrawal. It includes: · fixed-term deposits; · notice of withdrawal accounts, for which there is no fixed term but for which written notice is required at least the day before funds can be withdrawn or transferred out of the account; · savings deposits with restrictions or limitations on payments or withdrawals; and · money-market deposit accounts. It excludes: savings deposits linked to an account from which payments may be made to third parties (e.g. Automated Teller Machines, debit card or another electronic device) where funds may be transferred to the linked account almost instantaneously and subsequently withdrawn or transferred to a third party on demand. In practice, classify a deposit as non-transaction deposits where any of the following criteria are met: · more than 24 hours’ notice is required to withdraw or transfer funds from the account; · the funds cannot be directly withdrawn, used for payment to a third party, or instantaneously transferred to a linked account from which either of these types of transactions can be conducted; · there is a restriction on the number of withdrawals or transfers than can be made (e.g. maximum of two withdrawals a month) or the rate of interest charged on the deposit differs based on whether a certain number of withdrawals have been made (e.g. bonus savings accounts); or · there is a restriction on or penalty charged for early withdrawal or transfer of funds (such as loss of interest earned on the remaining funds or a penalty fee other than a transaction fee). If none of the above criteria are met, classify the deposit as a transaction deposit. |
Non-transaction merchant fees charged | Means all fees charged to merchants other than per-transaction merchant fees charged. It includes: · joining and annual fees; · terminal and imprinter hire fees; · access fees; · credit card authorisation request fees; and · termination fees. |
Notes and coins | Means holdings of physical currency. It includes: Australian and foreign currency notes and coins. |
Occupancy and equipment expenses incurred | Refers to expenses incurred during the period from tangible assets. It includes: · rental expenses on operating leases; · depreciation and repairs and maintenance of property, plant and equipment; · utility expenses; and · property rates and taxes. It excludes: · wages and salaries of own employees; · depreciation on information technology equipment; · rental expense for information technology equipment; and · repairs and maintenance expenses on software and information technology equipment. |
Off-balance sheet securitised (assets) | For an ADI or RFC that is a related party of an ADI: Means assets that have been removed from the institution’s balance sheet because they were originated by, or moved to, an SPV for the purposes of a securitisation, and have been derecognised from the domestic books balance sheet under Australian Accounting Standards. Does not include any cover pool assets that have been transferred to an SPV for the purposes of being held in a covered bond collateral pool for covered bonds. For an RFC that is not a related party of an ADI: Not applicable. |
Offices | Means any non-residential buildings (or parts of such buildings) where the primary purpose is for clerical or professional duties. |
Offset accounts | Means where a borrower has a deposit account and a loan (usually a housing loan) with the same institution. Instead of receiving interest on the deposit account, the interest payment due on the loan is calculated on the net balance of the loan (credit outstanding on the loan less any amount in the deposit account). Offset accounts typically refers to the value in the deposit account. For offset accounts, report the interest rate as the contractual rate payable on the linked loan account, multiplied by the proportion of the offset account balance that is offset against the loan balance. For instance, if the balance in the offset account is fully offset against the loan balance, then the interest rate on the offset account would be the interest rate reported on the loan account. However, if only half of the balance in the offset account is offset against the relevant loan balance, then report the interest rate on the offset account as half of the interest rate on the loan account. |
On-balance sheet securitised (assets) | For an ADI or RFC that is a related party of an ADI: Means assets that have been originated into, or transferred to, an SPV for the purposes of securitisation, but which have not been derecognised from the domestic books balance sheet under Australian Accounting Standards. Includes all cover pool assets that have been transferred to an SPV for the purposes of being held in a covered bond collateral pool for covered bonds. For an RFC that is not a related party of an ADI: Means assets that have been originated into, or transferred to, an SPV for the purposes of securitisation. |
Operating leases | Has the meaning in AASB 16. In general, means a lease other than a finance lease. It does not transfer substantially all the risks and rewards incidental to ownership. |
Original (maturity/term) | Means the contractual term to maturity at issuance. |
Other deposit fees charged | Means all fees charged on deposit accounts (including break fees and exception fees charged) other than account servicing fees charged and transaction fees charged. It includes: · break fees charged; · exception fees charged; · stopped payment fees; · duplicate statement and card replacement fees; · transaction verification fees; · bank cheque replacement and repurchase fees; · deposit book fees; · international cheque and money transfer fees; and · charges for travellers’ cheques and foreign currency transactions associated with a deposit account, including the foreign currency fee on cash withdrawals (exclude the withdrawal fees charged. Report these as transaction fees charged). |
Other fees charged | Means all banking-related fees charged other than fees charged associated with deposits, loans, finance leases, and merchant fees charged. It includes: · export collection fees; · fees from international telegraphic transfers and foreign currency drafts from customers without a deposit or loan account; · guarantees; · fees for the transmission of deed or documents for inspection, delivery or execution; · safe custody and special clearances; · short-term money-market transaction fees; · coin and note handling services; · fees from the supply of certificates; · fees for legal, payroll and search services; · charges for travellers’ cheques or foreign currency purchased with cash, or with credit cards issued by another institution; · fees for custodial and night safe services; and · fees for legal and service services. It excludes: · government taxes; · fees associated with insurance operations or funds management; · package fees. Include these with the product (deposit account or loan) that they most relate to; and · charges imposed by the group treasury, such as costs charged to the business unit by treasury from termination swaps (i.e. do not report net fee income). |
Other intangible assets | Refers to items such as trademarks, company brand, customer databases, licenses, patents and goodwill. |
Other loan and finance lease fees charged | Means all fees related to loans and finance other than account servicing fees charged and transaction fees charged. It includes: · break fees charged; · exception fees charged; · prepayment fees and repayment holiday fees; · early repayment fees; · switching fees; and · reference fees. |
Other margin loans | Means any margin loans that are not standard margin loans or protected margin loans. |
Other non-residential buildings | Means any non-residential buildings (or parts of such buildings) that are not shops, offices or industrial buildings. It includes: hotels and buildings for educational, religious, health, entertainment and recreational purposes. |
Other non-transaction deposits | Means all customers’ non-transaction deposits that are not fixed-term deposits. |
Other outsourced information technology services | Represents information technology related services purchased from external services providers. It includes: · outsourced information technology equipment installation costs; · outsourced data processing services. Data processing services relate to the transformation of data into a suitable output including data entry and manipulation services; · outsourced web hosting services; · outsourced electronic information storage services; and · outsourced computer system design relating to computer hardware, computer programming, internet and web design and system analysis. It excludes: computer software installation costs paid to external service providers. |
Other transport vehicles and equipment | Refers to equipment and vehicles for moving people and objects. This may include items such as ships, railway and tramway locomotives, rolling stock, aircraft and attachments such as trailers, semi-trailers. It excludes: vehicles that are primarily to be used on the road such as cars, trucks, motor cycles and utes. Report these as road vehicles. |
Overseas equities | Means shares that are quoted on stock exchanges other than an Australian stock exchange. |
Owner-occupied (housing loan) | Means a loan to a household for the purpose of housing, where the funds are used for a residential property that is occupied or to be occupied by the borrower(s) as their principal place of residence. Where the loan is for a residential property that is different to the residential property against which the loan is secured, this definition refers to the occupation status of the residential property for which the loan has been obtained (not the occupation status of the residential property used as security). It includes: · dwellings and residential land that are vacant while under construction, but that the borrower intends to occupy as a principal place of residence; and · part-time residences that are the borrower’s or borrowers’ principal place of residence. It excludes: · part-time residences that are not the borrower’s or borrowers’ principal place of residence. Report these under investment housing loans; and · housing loans where the borrower is not a household. Report these under the appropriate business category. Where there is doubt or ambiguity over whether a loan is for an owner-occupied or investment property, report the loan as for investment. |
Partially secured | Means finance that is secured and has an LVR of greater than 100%. |
Past due | Has the meaning given in Prudential Standard APS 220 Credit Risk Management. |
Payments to other businesses/ organisations for staff | Refers to payments incurred that are due to employment agencies or labour hire firms for staff. |
Payroll tax | Refers to a tax levied by state and territory governments on the amount of wages and salaries paid by a business. It excludes: pay-as-you-go withholding tax. |
Personal investment | Refers to personal loans to purchase assets that are expected to maintain or increase in value other than housing. It excludes: · housing for the purposes of investment; and · margin loans. |
Personnel expenses | Refers to remuneration related expenses incurred during the period. |
Per-transaction merchant fees charged | Means all transaction-based merchant fees charged for acquiring card transactions, whether collected on an ad valorem or flat basis. Include transactions involving cards issued to households or businesses, either in Australia or overseas. Report income from merchants net of rebates and concessions. |
Plant and equipment | Means any property, plant and equipment asset that is not property. Such assets are typically vital to business operations but cannot be easily liquidated. It includes: · road vehicles; · other transport vehicles and equipment; · construction and earthmoving equipment; · agriculture machinery; and · electronic data processing and office equipment. |
Postage expenses | Refers to expenses related to postage, mailing and courier expenses. Includes expenses incurred for the picking up, transport, and delivery (domestic or international) of addressed or unaddressed mail, packages and parcels. It includes: · postage stamps; · mailbox rental services; · customised express pickup and delivery services; and · messenger services. It excludes: storage (where this expense can be distinguished from courier expenses). |
Preference shares | Means a type of equity security that has a priority over dividend payments and to the assets of the company. |
Principal amount | Means the cash consideration (post‑haircut) on the initial leg of a repo or securities loan contract. |
Principal place of residence | Means the residential property at which an individual resides for the majority of the year. |
Property | Means land, a building – or part thereof – or both. A building can take the form of a dwelling (or a group of dwellings) or a non-residential building. |
Property, plant and equipment | Has the meaning as in AASB 116 Property, Plant and Equipment (AASB 116). |
Property rates and taxes | Include amounts paid for land tax, municipal rates and metropolitan improvement rates, where: · land tax consists of taxes on the ownership of land based on the assess value of the land; · municipal rates consist of levies imposed by local government authorities on the assessed value of property for the purpose of financing municipal services. Exclude amounts collected with municipal rates but identified as charges for direct supply of goods and services such as water, sewerage rates and garbage charges; and · metropolitan improvement rates consist of levies on property owners intended specifically for financing the planning and development of land within the metropolitan region. It includes levies used for the acquisition of land for the development of metropolitan parks; support of regional studies; financing open space improvements. |
Protected margin loans | Means margin loans that have a maximum allowable LVR of 100 per cent and the lender guarantees that the value of the borrower’s underlying security will not be less than the value of credit outstanding at the end of the predetermined investment horizon. Borrowers with protected margin loans do not receive margin calls, but are charged a significantly higher interest rate than for standard margin loans. Protected margin loans in effect combine a standard margin loan with a put option on the assets purchased. |
Provisions for dividends | Means the allowance that the ADI or RFC has made in terms of the obligation for declared dividends. |
Rebate rate | Refers to the rate that the borrower of a security pays the lender when the securities loan is backed by cash collateral. The rebate fee is predetermined in a securities lending agreement between the borrower and lender (or the agent on the lender’s behalf) and should be expressed as an annualised percentage of the market value of the securities borrowed. |
Recoveries | Refers to the value of reversals of impairment losses on financial assets through cash collections as determined in accordance with Australian Accounting Standards. |
Redraw facility | Means a facility that enables a borrower to access (subject to conditions) the accumulated excess repayments they have made towards their loan. The balance of funds in a redraw facility is typically offset against the balance of the loan amount when calculating interest payable. While redraw facilities are a type of revolving credit facility, where they are attached to a fixed-term loan report them as fixed-term loans as there is typically not a separate contract. |
Reinvestment asset | Means the collateral pledged by the borrower of a security in a securities lending contract. |
Reinvestment rate | Means the rate of return earned on the cash proceeds generated by stock lending activity. |
Related party management fee income/expense | Refers to the payment from an entity to a related party as part of a recharge or reimbursement arrangement, whereby one entity assumes operating expense of a related party, and in return charges a service fee to the related party to recoup the costs of the resource or services they have provided on behalf of the related party. May be referred to as: · intercompany management fee; · internal recharge cost; · intercompany service fee; · intercompany charges; or · head office charge. |
Rental, repairs and maintenance expenses | Refers to the value of rental expense incurred for using rented equipment and the value of repair and maintenance expenses. |
Repairs and maintenance expenses | Refers to the value of ordinary maintenance and repairs that are obliged to be undertaken periodically in order to be able to utilise assets over their expected services lives. They are costs that cannot be avoided if the assets are to continue to be used. Maintenance and repairs do not change the asset or its performance, but simply maintain it in good working order or restore it to its previous condition in the event of a breakdown. It excludes: wages and salaries of own employees. |
Repurchase agreement (repo) | Means a contractual arrangement involving the provision of securities or other financial assets (collateral) in exchange for cash with a commitment to repurchase the same or similar collateral at a fixed price either on a specified future date or on demand. |
Repo rate | Means the percentage difference between the purchase and repurchase price of a security expressed as an annual rate. |
Residential land | Means any vacant land that does not have a dwelling attached but where the construction of a dwelling is allowed under zoning regulations. It excludes: land where the primary purpose of the land will be for business purposes. Report this under the appropriate business category. |
Residential property | Means residential land and buildings – or parts thereof – that take the form of dwellings or a group of dwellings. |
Residual maturity/term | Means the remaining term to contractual maturity. |
Retirement savings accounts (RSAs) | Means low risk/low return capital guaranteed products that are subject to the same restrictions as other superannuation products. Only an ADI, life insurance corporation or a prescribed financial institution can be approved by APRA to act as an RSA under the Retirement Savings Act 1997. RSAs are specifically approved non-trustee institutions. |
Revaluation | Represents: · the holding gain and losses arising from changes in market prices of the contracts; · accrued interest (e.g. swap coupons); and · other changes that are not transactions (such as court-ordered liquidation write offs). |
Reverse mortgage | For reporting purposes, treat these loans like a revolving credit facility. Include any accrued interest in the credit limit and the credit outstanding. |
Reverse repo | The buyer of the asset in a repo is referred to as conducting a reverse repo. |
Revolving credit | Means lending facilities that the borrower may repeatedly draw down in part or in full up to an authorised credit limit and repay, any credit drawn, in part or in full, on multiple occasions without the facility being cancelled. Repayments (other than of charges and interest) reduce the borrowings, thereby increasing the amount of unused credit available. Include facilities with a fixed term that meet the above criteria. It includes: · arranged overdrafts. These are generally an agreed arrangement between a lender and a borrower to extend credit when the balance in an attached transaction account falls below zero; · unarranged overdrafts. These refer to the situation when a transaction account holder withdraws an amount greater than the balance of the account leaving a negative balance. The lender usually charges an overdrawn account fee as well as interest on the negative balance, and usually requires the account holder to restore the account’s positive balance; · secured and unsecured revolving credit facilities; and · reverse mortgages. It excludes: · redraw facilities attached to fixed-term loans; and · bill facilities. |
Road vehicles | Refers to vehicles that are primarily to be used on the road such as cars, trucks, motor cycles and utes. It excludes: attachments such as trailers, semi-trailers. Report these as other transport vehicles and equipment. |
Royalties income/expense | Refers to payments made by one business or individual for the use of rights owned by another business or individual. Do not deduct withholding tax. It includes: · payments under licensing arrangements; and · payments of royalties from intellectual property (e.g. patents, copyrights, etc.). It excludes: · expensed computer software licence fees; and · capitalised computer software licence fees. |
Rural property | Means any land where the primary purpose is for agricultural or pastoral use. |
Scheduled repayments | Means the minimum repayment amount required to be paid in order to fully amortise the principal (and any fees or changes as appropriate) by the loan maturity date in accordance with the loan conditions. For loans that are ahead of schedule (or behind schedule), the minimum repayments reported should be calculated based on the scheduled balance of the loan and not the actual balance. |
Secured (finance) | Means finance for which the lender has recourse to collateral pledged by the borrower or a third party in the event of default by the borrower. Except when reporting finance that is secured by residential property, secured finance may be fully secured or partially secured. |
Secured by residential property | Means finance for which the lender has recourse to collateral pledged by the borrower or a third party in the event of default by the borrower and: · the value of the security for the loan represents 50 per cent or more of the loan balance; and · 50 per cent or more of the security is residential property. |
Securities borrowing | The borrower of the security in a securities lending agreement can be said to be undertaking securities borrowing activity. |
Securities held for trading | Has the same meaning as in AASB 9. |
Securities lending | Means a lending arrangement under which a holder of a security agrees to provide the security to a borrower for a specified period of time. Loans are typically executed under standardised agreements, which give the borrower full title for the term of the loan. The lender typically charges a fee for the loan and requires the borrower to post collateral. |
Securities not held for trading | Means securities that are not securities held for trading (as defined in AASB 9). These are generally securities purchased with the intent that they be held to maturity or held for a period of time though not necessarily to maturity (i.e. equity securities where it is not technically possible to hold to maturity). |
Securitisation | Involves the creation of a financing structure where the cash flow from a pool is used to make payments on obligations to at least two tranches or classes of creditors (typically holders of debt securities), with each tranche or class entitled to receive payments from the pool before or after another class of creditors, thereby reflecting different levels of credit risk. Payments to the investors depend upon the performance of the underlying exposures, as opposed to being derived from an obligation of the entity originating those exposures. The tranched structures that characterise securitisation differ from ordinary senior/subordinated debt in that junior securitisation tranches can absorb losses without interrupting contractual payments to more senior tranches, whereas subordination in a senior/subordinated debt structure is a matter of priority of rights to the proceeds of liquidation. The securities are backed by a pool of specific assets, often housing loans, and the securities can be short-term or long-term. Securitisation exposures have the meaning in Prudential Standard APS 120 Securitisation (APS 120). |
Security | Means an asset (or assets) pledged by the borrower or a third party against a loan. In the event of default by the borrower, the lender has recourse to this asset. |
Self-securitised | Relates to a securitisation that is solely for the purpose of using the securities created as collateral in order to obtain funding via a repurchase agreement with the RBA. Self-securitisation is also known as an internal securitisation. |
Semi-government securities | Means the debt obligations of a central borrowing authority of a state or territory of the Commonwealth of Australia. It includes: fixed-interest rate bonds, linked bonds and Treasury notes issued by a state or territory of the Commonwealth of Australia. |
Senior unsecured debt | Means any unsecured debt security that must be repaid ahead of all other unsecured and subordinated debt security holders other than those outlined in paragraphs 13A(3)(a)-(e) of the Banking Act 1959 in the event that the ADI is unable to meet its obligations or is about to suspend payment. |
Set-off accounts | Means linked deposit and loan accounts that pay a different interest rate depending on whether the linked accounts are in a net loan or net deposit position. They are similar to offset accounts but differ in that, if the linked accounts are in a net deposit position, the customer will be due interest. |
Share-based payment expense | Refers to employee share-based payments and stock options, expensed to the ADI or RFC for remunerating employees, incurred during the period. |
Shops | Means any non-residential buildings (or parts of such buildings) where the primary purpose is to sell goods or services. |
Short-sold position(s) | Means the value of positions from the sale of borrowed securities. |
Short-term | Means an original maturity of less than or equal to 12 months. |
Small (business size) | A business is classified as small if the ADI or RFC has an exposure to the business that is less than $1 million and the business has turnover of less than $50 million. Include exposures classified by ADIs using the internal ratings-based approach to credit risk as ‘SME Retail’ in this category. |
Standard margin loans | Means margin loans that typically have a maximum allowable LVR of 40 to 80 per cent, depending on the type of stock or managed fund that is provided as security for the margin loan. These loans are subject to margin calls if a decline in the value of the underlying security raises the LVR above the pre-specified maximum. |
Stationery expense | Refers to costs incurred for office supplies and printing carried out by or for the business. It includes: · all office stationery; and · production of financial reports, etc. |
Subordinated | Represents any asset or liability that will, in entirety or in part, not be repaid until other specified creditors are repaid. |
Subordinated debt | Means any debt security that is repaid after those outlined in paragraphs 13A(3)(a)-(e) of the Banking Act 1959 and after senior debtholders in the event that the ADI is unable to meet its obligations or is about to suspend payment. |
Supra‑national and foreign agency-issued debt securities | Means debt obligations of intergovernmental, governmental or quasi-governmental organisations. |
Syndicated loans | Means an extension of credit where the funds are jointly provided by two or more lenders. Syndicated loans possess a single loan agreement, but each participant to a syndicated loan maintains a separate claim on, and bears the credit risk for, the portion of the loan that it has provided. |
Telecommunications services and internet services | Refers to payments (of a non-capital nature) for telecommunication and internet services that engage wire, cable or radio transmission. It includes: · telephone charges; · facsimile charges; · internet charges; and · cost of leased lines for computers and internet services. It excludes: installation costs. |
Tenor | See original (maturity/term). |
Term | Means length of time until maturity. For original maturity, this refers to the length of time from origination until maturity. For residual maturity, this refers to the length of time from the reporting period until maturity. |
Tier 2 capital instruments | Refers to instruments that are compliant with the definition in Prudential Standard APS 111 Capital Adequacy: Measurement of Capital (APS 111). Excludes instruments that do not fully meet the criteria in Attachment H (whether or not these are eligible for transitional treatment under Attachment L of APS 111). |
Trade credit | Refers to goods or services purchased for which the corresponding payment is deferred past the date on which the good or service is received. |
Trade date | Means the date on which the repo or reverse repo was contracted. |
Trade finance | Means the provision of credit for the purpose of facilitating trade transactions. The finance relates to and is directly underpinned by the movement of goods or the provision of services such as documentary trade letters of credit, documentary and clean collection, import bills, export bills and shipping guarantees. A typical relationship is where the intermediary provides upfront payment to an exporter, and allows the importer to repay this credit once delivery is confirmed. |
Trading book | Means positions in financial instruments that are held either with trading intent or to hedge other elements of the trading book. Positions held with trading intent are those which: · are held for short-term resale; or · are taken on with the intention of benefiting in the short-term from actual and/or expected differences between their buying and selling prices, or from other price or interest rate variations; or · arise from broking and market-making. For an ADI this will include positions in financial instruments that meet the requirements of Prudential Standard APS 116 Capital Adequacy: Market Risk (APS 116). |
Transaction deposits | Means all deposits that are directly accessible and exchangeable for notes and coins on demand at par and without penalty or restriction. The funds are directly accessible if they can be withdrawn or used to make payments to a third party by draft, giro order, direct debit/credit, cheque or another direct payment facility on demand. Examples of penalties or restrictions include limits on the value or volume of withdrawals in a given period and penalty fees or loss of bonus interest for withdrawals or other access to make payments. It includes: · accounts from which payments may be made to third parties (e.g. Automated Teller Machines, cheque, debit card or another electronic device); and · savings deposits linked to an account from which payments may be made to third parties (e.g. Automated Teller Machines, debit card or another electronic device) where funds may be transferred to the linked account almost instantaneously and subsequently withdrawn or transferred to a third party on demand without penalty. |
Transaction fees charged | Means fees charged that relate to transactions made, generally charged to the party initiating the transaction. For deposits it includes fees charged on: · branch-assisted withdrawals and deposits; · cheque payments and cashing, including bank cheques; · EFTPOS, BPAY, direct debit and/or periodic payments; and · ATM, internet or telephone banking transactions, including withdrawals, deposits and balance enquiries. For loans and finance leases it includes fees charged on: drawdowns and redraws on loans and finance leases. |
Travel, accommodation and entertainment expenses | Travel expenses are costs incurred for transportation services relating to business activities that occur away from the normal place of business. These costs are only to be included if they are incurred in connection with business activities. Accommodation expenses are those costs incurred in providing accommodation to staff when business activities occur away from the normal place of business. Entertainment expenses are the costs incurred by a business for the provision of entertainment activities. |
Tri-party agent (tri-party) | Means custodian banks to which collateral selection, payment and settlement, custody and management during a repurchase agreement is outsourced. |
Turnover | Means the value of total sales made by a business during the most recent year. Calculate this using the values that the borrower reports to the Australian Taxation Office through Business Activity Statements. |